A short Slideshare and video on the role of quality in performance management.

1. Quality
Quality Management
Quality Assurance
Quality Control
Improving business processes is key to an
organisations survival.
A quality product or service is:
• A product or service fit for purpose
• A product or service free from errors
• A product or service fit for use
• A product or service that meets the needs
of consumers

2. Quality
Quality Management
Quality Assurance
Quality Control
Quality management is the planning & control
of activities to ensure the product or service is:
• Free from errors
• Adheres to design specifications
• Is fit for use
• Meets the needs of consumers

3. Quality
Quality Management
Quality Assurance
Quality Control
Quality control is the measurement & control
of quality as a product or service is produced.

4. Quality
Quality Management
Quality Assurance
Quality Control
Quality assurance is the
review of quality control procedures

5. Quality
Quality Management
Quality Assurance
Quality Control
QC is concerned with the detection of defects
QA is concerned with the prevention of defects

6. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
Quality related costs can be:
• Cost of conformance
• Cost of non-conformance

7. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
The cost of Conformance is
• Prevention costs
• Appraisal costs

8. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
The cost of implementing the quality improvement programme.
• Customer surveys
• Research of customer needs
• Field trials
• Quality education & training programmes
• Supplier reviews
• Investment in improved production equipment
• Quality engineering

9. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
The costs of inspection & testing.
• Capital cost of measurement equipment
• Inspection & testing
• Product quality audits
• Process control monitoring
• Test equipment expenses

10. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
The cost of Non-Conformance is
• Internal failure costs
• External failure costs

11. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
The costs arising from inadequate quality where the problem is discovered
before the transfer of ownership from supplier to purchaser.
• Rework/rectification costs
• Cost of scrap
• Disposal of defective products
• Downtime/idle time due to quality problems

12. Quality
Quality Cost
Conformance
Non-Conformance
Prevention
Internal
Appraisal
External
The cost arising from inadequate quality discovered after the transfer of
ownership from supplier to purchaser.
• Complaint investigation & processing
• Warranty claims
• Cost of lost sales
• Product recalls

13. AccountingCollege.co.uk